- 1. S TRATEGICB USINESS P LANNING Designing the Future of the
Organization
2. Our Goals for Today ...
- Explain and demonstrate the basics of Strategic Business
Planning.
- Get you started on the process.
- Provide a framework to continue the process.
- Lots and lots of application -workshops
- The 5 ways to run or ruina great business
3. D= IO Op NO ! NO ! NO ! NO ! NO ! NO ! NO ! NO ! YES!!! 4.
The 5 Key Factors -/+
- Lack of a clear, specific , vivid, compelling and realistic
vision.What is your clear Intended Outcome?
- Lack of urgency.You must turn the business planinto a business
reality.
- Lack of open, honest communication.C-C-C-T
- Allowing sub-par employees to remain.T.T.T.
- Turning the focus inward.The customer MUST be the focus
5. Thinking Down Board 6. ACCEPT CHANGE COMPLAIN It will always
be like this I have no control I cant impact this It is out of my
hands No need to plan It has already happened I dont have the
authority It is not worth the effort or risk I cant fight it any
longer I must do somethingI can make a difference I am willing to
work and fight I can impact or influence this I demand that things
change It is worth the risk I must make a plan This is my
responsibility This cant go on I wish They ought to I hate I am
sick of Somebody should Why dont they It is stupid 7. What is
Strategic Business Planning ? 8. The Elements of the Strategic
Business Planning Model Vision Define the business Goals Targets
Measurements 9. 1. Long-term impact of decisions
-
- Strategic planning deals with the future impact of current
decisions. This means looking at the cause and effect consequences,
over time, of an actual or intended decision.
10. 2. Strategic Business Planning is a process
- It is a process that begins with the setting of organizational
aims, defines strategies and policies to achieve them, and develops
detailed plans to make sure that strategies are implemented so as
to achieve the results sought.
11. 3. It is a philosophy
- Strategic Planning is an attitude, a way of life.Planning
necessitates dedication to acting on the basis of contemplation of
the future, a determinationto plan constantly and systematically as
an integral part of management.
12. 4. It gives structure
- A formal strategic planning system links the three major types
of organizational plans:
-
- Long-range Strategic Plans
-
- Short-range Budgets and Operating Plans
13. What Strategic Business Planning is Not !
- Strategic planning does not attempt to make future
decisions.
- Strategic planning is not forecasting.
- Strategic planning is not an attempt to blueprint the
future.
- Strategic planning is not necessarily the preparation of
massive plans and reports.
- Strategic planning is not an effort to replace good management
judgement.
14. Why Planning Pays Off
- Asks & answers questions of importance
- Forces the setting of objectives
- Gives a framework for decisions
- Developsperformance measurements
15. The 5 tasks of Strategic Business Planning Defining the
business / developinga Vision Gap & SWOT analysis -Setting
objectives Crafting a strategic Action Plan Implementing and
executing strategy Evaluating performance reviewing - adjusting
correcting 16. BusinessThinking
- Check your ego at the door
- Explore the ripple effect
- Slow down for yellow lights
17. Task 1 Define the Business Develop a Vision
- You must create a clear, vivid, compelling and achievable
VISION of where you want to take your business over the next 3-5
years.
Some key questions to think about 18. 1. What is the thrust or
focus for future business development? 2.What is the scope of
products and markets that will - and will NOT - be considered.
3.What is the future emphasis or priority and mix for the products
and markets that fall within that scope? 4.What key capabilities /
resources are required to make this strategic Vision happen?(money,
product, people, advertising, distribution) 5. What does this
Vision imply for growth and return expectations? 19. The GAP / SWOT
Analysis Vision 3-5 years Situation Audit The GAP Where youwant to
go. Where youare today. What you haveto do to get there . 20. This
is the crucial stage of askingand honestly answeringdozens of very
difficult questions 21. Gap / SWOT Work Shop
- Many you will need more information in order to answer
- Write your answers on a separate sheet
- Write very clearly complete sentences
- This is supposed to be very hard work
22. Now you should have a huge collection of data, facts,
concerns and questions. The next step is to convert all of this
random but important- information into a list of keyFactors 23.
Factors are:
- Anything that could positively or negatively affect your
ability to accomplish the vision.
- Written in complete sentences.
- Written as a statement of fact.
- 1.I DK our current market share.A
- 2.We have 3 new products that will launch this year.B
-
- A = Immediate action required top priority
-
- B = Requires action at some time
-
- C= important information but no action required
24. As you review the analysis
- You may address several items with just a single well written
Factor
- It may take multiple factors to cover just one piece of
data.
- When in doubt write another Factor
Examples: 1.Our major competitors are Acme and Ajax. C 2.We
currently have 15% market share. A 3.The target is to reach 20 %
Market Share by 6/30/03A 4.DK if Sun Systems is planning to enter
our market. B 5.DK if we can renegotiate our supplier contracts. B
6.DK if we can automate part of our production process.A 7.Our
current computer system is not sufficient for our needs. A 8.DK the
technical specs of an acceptable computer system. B 25. It may help
to create Factor categories to keep track of the major themes
26. Business Objectives Now comes this most difficult step the
actual setting of business strategy the creation of keyBusiness
Objectives 27. After looking at all of your Factors and Factor
Categories
- You must now create a handful of strategic thrusts that will
drive your teamfor the next 3-5 years.
- What are the main areas of focus?
- Where will you deploy resources?
- How will you measure success?
28. Isnt this a little redundant again? Yes, we are going
through a time consuming but necessary screening process.Form the
broadest examination of the business possible, down to the few Key
Result Areas that must be accomplished to successfully achieve the
Vision. 29. The setting of Business Objectives may take days or
even weeks 30. The rubber meets the road Business Objectivesdrive
the Strategic Action Plan Page: 28 31. SMART pecific easurable
greed Upon ealistic ime Bound Delegation Empowerment MBO Strategic
Plan 32. Once again, this is time consuming and difficultbut vital
to your success!
- Actions must be clear and focused
- Write them as output not input
- Assign responsibility and a due date
- Cross-reference with key Factors
- Track progress and failure
- Adjust as needed new info
33. ContingencyPlanning
- Factors that could have a serious impact on your business.
- Trigger Point - measurable
- Contingency Plan - Action
34. The final steps but the critical ones
- Monitoring, review, adjustment
Page: 31 35. That is: StrategicBusinessPlanning Thank You
